Tokenization Becomes Top Priority for 84% of Financial Institutions, Survey Finds

A new survey from financial technology provider Broadridge shows that tokenization has become a strategic priority for the vast majority of financial institutions, with 84% of respondents saying the technology plays an important role in their business. The survey, which included 200 North American financial services executives, suggests the industry is shifting from early-stage blockchain experiments toward genuine preparation for tokenized assets becoming a standard part of market infrastructure.

Growing Investment and Confidence in Long-Term Impact

Tokenization involves representing ownership of real-world assets, such as stocks, bonds and real estate, as digital tokens on a blockchain, offering potential benefits like faster settlement, lower costs and around-the-clock trading. According to the survey, 68% of respondents believe tokenization will meaningfully reshape financial markets within the next three to five years, and nearly a third plan to significantly increase investment in tokenization initiatives over the next two years.

Firms Expect Hybrid Markets, Not a Fully Onchain Future

Rather than replacing existing systems entirely, most firms are planning for digital and traditional assets to coexist. The vast majority of respondents expect this coexistence to continue for the foreseeable future, and most plan to integrate tokenization into their current infrastructure rather than build entirely separate blockchain-based systems, mirroring the approach already taken by several major financial institutions.

Adoption Varies Widely Across Sectors

Progress remains uneven across different parts of the industry. Capital markets firms are furthest along, with nearly half reporting active tokenization initiatives already in production, compared to a smaller share of asset managers and an even smaller portion of wealth managers. Survey respondents also expect tokenized mutual funds and money market funds to see the strongest adoption over the next five years, while tokenized equities are expected to progress more slowly.

Regulatory Uncertainty Remains the Biggest Hurdle

Despite the optimism, firms continue to face real obstacles. Regulatory uncertainty was cited as the most significant challenge, followed closely by the operational complexity involved in integrating blockchain technology into existing financial systems.